What is compulsory third party insurance?

Compulsory third party (CTP) insurance is a type of insurance that provides compensation to those who have sustained injuries in a motor vehicle accident. While this cover may provide compensation to successful claimants, it does not cover the costs of property damage or any damage that may occur to your vehicle or the vehicles of others.

As the name suggests, CTP is a compulsory form of insurance that all motorists in Australia are required to have. In fact, it is illegal to drive a vehicle that is not covered by a CTP policy. In many states and territories, it is included within the total cost of vehicle registration, while in New South Wales you will need to purchase a policy separately before you can register your vehicle.

When might you be eligible to make a CTP claim?

If you’ve been involved in a motor vehicle accident, whether as a driver, a passenger, a pedestrian, a cyclist or as a driver of another type of vehicle, such as a motorcycle, you may be entitled to make a CTP insurance claim. Get in touch with our team of claim advisors today to discuss your case and discover what you may be entitled to claim.

What are the CTP laws in New South Wales?

In New South Wales, the payment of benefits for injuries sustained in a motor vehicle accident is governed by the Motor Accident Injuries Act (2017). The Act allows for two types of claims: claims for statutory benefits and claims for common law damages. This is one of the fundamental changes to the previous accident compensation and insurance schemes. There are separate forms, processes and procedures for each type of claim, signalling a significant shift in mindset when dealing with claims for statutory benefits. Claims for statutory benefits are expected to be made promptly within days or weeks of an accident, while common law claims cannot be made until 20 months have passed since the accident (unless a claimant has a whole person impairment greater than 10%).

What do you do to claim CTP insurance in New South Wales?

If you have been injured in a motor vehicle accident in NSW, you may be able to immediately claim up to $5,000 for your treatment and loss of earnings without having to lodge a formal claim. This form is called the Accident Notification Form (ANF). These benefits are available regardless of who was at fault.

The insurer will let you know within 10 days of receiving the ANF whether they will pay for your early treatment expenses and lost earnings. An agreement by the insurer to pay for these expenses is not an admission of liability or an agreement to pay for other expenses. The insurer is only required to pay for treatment expenses that are deemed reasonable and necessary, and are related to the injury caused by the motor accident in accordance with any relevant guidelines. The maximum amount the insurer has to pay for a particular treatment provided by a doctor is the amount set out in the Australian Medical Association (AMA) list of medical services and fees. Set fees may also apply for other services. The insurer may also pay for past loss of earnings at the end of the six month period if the allocated sum of $5,000 allows.

What should you do if you are involved in a motor vehicle accident?

If you are involved in a motor vehicle accident as a driver, passenger, pedestrian or cyclist, it’s important to take a few key actions after the accident occurs. Where possible look to:

  • Call the police and report your accident. In order to make a CTP claim, a police report will need to have been made. If the police do not attend the scene of the accident, you will need to contact them directly, ensuring that you receive an event number that you can reference when submitting your claim.
  • Seek medical attention. No matter how mild you may think your injuries are, it’s always a good idea to see a doctor as soon as possible after being involved in a motor vehicle accident. As you receive medical treatment and are provided with certificates, reports and other documentation, look to store all documents safely for future reference.
  • Ask for the details of others involved in the accident. From other drivers to passengers and pedestrians, it’s a good idea to gather the names and contact details of others who were involved in the accident. Ask for the insurance details and registration of other drivers too.
  • Get the details of any witnesses. If there were witnesses who saw the accident occur, ask them for their name and contact details. They may be able to help substantiate your claim if required.
  • Lodge your claim as soon as possible. The CTP claim process can be quite lengthy, so it’s always a good idea to begin the process as early as you can.

How long do CTP claims take?

As the circumstances surrounding each CTP claim can vary greatly, it can be difficult to know exactly how long it will take for a successful claim to be resolved. In most cases, it will take anywhere between 12 to 18 months, but this timeframe may be shortened or extended depending on the severity of your injuries and whether you need to appeal the initial decision made by the insurer.

Why should you choose What’s My Claim Worth?

What’s My Claim Worth can help you start the process to get the result you need for lodging a CTP insurance claim in New South Wales. Starting this legal process can result in monetary compensation for you, as well as potential new orders surrounding third party insurance claims If you or a loved one has suffered injuries. Every year we help countless people make no win, no fee CTP claims.

Once you’ve reached out to our helpful team of claim advisors and have provided details about your situation, we can then put you in touch with the best legal professionals to handle your CTP Insurance claim — no win, no fee (excluding defendant costs if the claim is litigated).

Frequently asked questions

Does CTP cover car damage?
No, unlike some other types of insurance, compulsory third party insurance only covers personal injuries.

Is CTP insurance compulsory?
Yes, CTP insurance is compulsory in all Australian states. It is a requirement for vehicle registration and it is illegal to drive a vehicle that is not covered by a CTP policy.